India and the United States (US) will set up a joint monitoring mechanism to enable exports of at least 336,000 tonnes of certain steel and aluminium products in a year to Washington without paying additional levies.
With respect to the recent resolution of the long-standing trade dispute between both nations, India will be able to export steel and aluminium to the US without paying the extra 25 per cent and 10 per cent. New Delhi, in return, has removed retaliatory duties on eight American products, including apple, almonds, lentils and walnut.
“We will have a biennial meeting...We have requested steel and mines ministries to designate an officer from their side who will be talking to stakeholders and exporters that applications are being properly processed,” Peeyush Kumar, additional secretary of the commerce department, told reporters in a briefing.
Officials will meet twice a year to review the arrangements, he said, adding that in case of any challenges, the matter would be conveyed to the commerce department that would take up with the US during the meetings of the joint monitoring mechanism.
“Applications of minimum 336,000 tonnes of steel and aluminium per year will be permitted...This is the minimum quantity, they can approve more also... the US allowed imports from some tested players,” Kumar said.
The commerce ministry had earlier said the move would provide significant impetus to raise India's steel and aluminium exports by about 35 per cent. These applications will be made under the exclusion process of Section 232 by the importers on behalf of the exporters. The US had imposed these duties using Section 232 of an act that permits the president to restrict imports.
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The additional tariffs had impacted $1.21 billion worth of India's exports of steel and aluminium to the US in 2018. The duty burden on exports due to additional US tariffs amounted to $241 million.